You are looking for a new merchant service provider.  Every company that you speak with states that they are the cheapest, they are better than the competition, or they have some other claim that they are the ‘best’ at.  How do you decide?

When selecting the provider, you should be clear about certain aspects of your business.  What kind of payments do you want to process, how many transactions would be processed per month, etc.  Find out if the provider incorporates new technologies in a timely manner. Not all merchant services providers are compatible with all kinds of business requirements.  Make sure that they can offer the services that you want.

My suggestion when undertaking this task is that you take a very systematic approach because this is an important partnership for your practice.  Make a list of items that are key to you and prioritize their value.  Take notes, compare answers, create a short list of contenders.

The following list contains issues that I think are important as well as studied feedback from customers.  Please do not take the order as an indication of relative priority.  For example, my personal preference is to put Trust and Customer Service at the top of a list.  You, however, will have your own thoughts on what is most important.  So, look it over, assign your own priority and add any topic that you think I missed.

Price

There are different pricing models and that the one that I recommend is called Interchange Plus pricing.  Interchange Plus pricing is based upon a small markup over interchange (the wholesale cost set by the Card Association).  It is the most transparent form of the major pricing models, makes it easier to compare pricing between companies and in most cases will give you the best cost.

Obviously, pricing will be part of the consideration in choosing your service.  Nowadays, many people view merchant services as a commodity and base their decision on finding a provider in its entirety on price and price alone.  I hope that by the end of this article you will have some new criteria to help you pick a new provider.

Offered Services

When interviewing the prospective merchant service company be sure to spend time talking with the representative about how you collect payments and what, if any, changes you want to make.  Ask the representative for recommendations.  Based upon your needs, many providers today can offer many solutions to help with your needs.

• Web interfaces
• Virtual terminals
• Wireless terminals
• Cell phone apps
• Computer software

There is enough technology today that you should be able to get a very close fit for what you want your payment process to look like.

Caution.  If you are exploring software to help with your business, be aware that there is an industry trend to offer a Software-as-a-Service that only supports one merchant service provider.  So, it is best to ask any of these SaaS companies upfront if they allow you to bring your own merchant service provider.  This may turn out to be a differentiating point for you in the process.  If the SaaS company does not allow you to choose a merchant service provider, you may want to consider another software.

Customer Service

This can be an important topic, and it can be hard to get your arms around.  Here are some of the things that I look for in a good partner.

Hours of Operation – Do the hours match up with when I would most likely be calling?

Email Support – Often, when I have a low priority question, I don’t want to waste my time on the phone.  I will email support and ask for a response.  I find this a time saver and it also serves to document my issues and the answers.

Test Drive – Ask the representative that you are speaking with if you can call customer service.  How long does it take to get someone on the line?  If you leave a message, how long until they call back?  When you talk to them, are they nice?  The last thing that you want when you are having issues that require a call to customer service is an unpleasant experience on top of the issue at hand.

Statement Layout

Get a copy of a statement for one of their existing merchants.  See what type of information is shown.  How complete is it?  Is it easy to read?  Does it show the charge categories?  Do you understand all the entries?   If not, are you able to get an explanation for them?

Also, ask if they offer different statement formats.  Some providers do.  You may find that a change of format can make all the difference in the world for understanding your statement.

Portal for Self-Service Information

Just as I like an email support option for customer service, I like to have a self-service portal where I can get activity information, look up transactions, etc…  Most merchant service providers today have something that provides this functionality.  Ask to see it.  Have them give you a demo.  This can be a handy time saver.  The more self-service that you can do on your own, the less reliant you are on others for timely information.

Trust

Ask friends and business associates who they use for merchant services and if they would recommend them to you.  Did they search for this service, or were they solicited?  What is customer service like?  Is there anything that they want to see improve?  A good recommendation, with a little probing, can be an invaluable resource.

Similarly, check professional resources like the BBB.  Online references like this keep a history of the businesses interactions and can give you a glimpse into how they interact with customers.

Although merchant services are treated as a commodity today, I would argue that this is an important partnership and deserves attention.  Do not rush the process of identifying a provider only to find out that for one or more of the reasons above it is not a good fit.  Take a little time and you will find a partner that you will be happy with for years to come.